nathan mcmahan joins board, page-5

Any time frames for action here?

They had a May 31st deadline for exclusive rights to due diligence on the Swedish U project.

Wonder if they'll go for it - or have something better in mind?

A lot of options have been exercised lately, meaning hte HDGO's are going to be very tightly held now.

Looking forward to news.

ACN 115 819 479
30 April 2007
QUARTERLY ACTIVITIES REPORT
FOR QUARTER ENDED 31 MARCH 2007
SWEDISH URANIUM PROJECTS
During the quarter Hodges entered an Option and Farm-in Agreement to earn an interest in four
uranium projects in Sweden (see map attached).
Asnebogruvan Project (1 permit)
The area is prospective for iron oxide hosted uranium–gold mineralization as evidenced by the
presence of hematite breccia and highly anomalous uranium, gold and rare earths in
association with granites. Sampling by the Swedish Geological Survey (“SGU”) in 1980 within
two pits assayed 4.7% uranium oxide (U3O8), 28 g/t gold, 0.32% wolfram, 2.7% tellurium, 0.15%
yttrium, 10g/t silver and 25% iron oxide whilst a grab sample from a second pit assayed 12.6 g/t
gold, 0.11% wolfram, 1.0% tellurium, 10g/t silver and 30% iron oxide (uranium was not analysed
in this case). Pitchblende-bearing mineralisation was noted to occur within fractures and faults
within a hematite brecciated sandstone. Within the local area seven more uranium bearing
fractures were noted.
The area was also explored for stratabound uranium mineralisation in 1970 by the SGU. One
and a half kilometres east of sampled pits, still within the claim area, drilling discovered an
irregular uranium horizon averaging 0.054% U3O8.
Norr Dottern (4 permits)
Norr Dottern hosts an extensive uranium mineralised boulder field extending for over 3.5 km.
Historic sampling of only a small set of boulders averaged 0.32% U3O8 and ranged up to 1.0%
U3O8.
Follow up trenching was completed in 1974 which exposed a high grade uranium–bearing zone
that assayed up to 28.2% U3O8 over 0.2 metres with an average grade of 3.5% U3O8 over 3
metres width along the 5 metre long excavation. A magnetic survey showed that the
mineralised area was characterised by a pronounced magnetic low anomaly and additional
magnetic lows were identified that were recommended for drill testing but never undertaken.
Harrejokk Project (2 permits)
Uranium mineralization was discovered at Harrejokk by the Swedish Geological Survey in
1970. Uranium mineralisation occurs within a granitic syenite and high uranium grades are
common. Sixty five boulders averaged 0.25% U3O8 with values ranging from 0.1% to 4.2%
U3O8. The Swedish Geological Survey drilled nineteen drillholes in the area to test for the
ACN 115 819 479
primary source of the high grade uranium mineralisation. This drilling did not locate bedrock
uranium mineralisation, which the Company will aim to locate.
Two kilometres away at Harrejokk East three boulder trains have been defined. The Swedish
Geological Survey drilled twenty five drillholes in 1974 to test the boulder trains, eleven of which
intersected uranium mineralisation. Two moderately south-east dipping uranium mineralised
structures were discovered. Best drill results included 4.5m @ 0.14% U3O8 from 85m and 5.3m
@ 0.11% U3O8 from 34m.
Sjaule Project (1 permit)
Uranium mineralisation at Sjaune is hosted within north east trending, steeply dipping fractures
zones over an area of 700m by 950m. Twenty-eight surface samples across the project area
were measured with a gamma radiation detector. Five samples assayed by the Swedish
Geological Survey in 1976, ranged up to 0.57% U3O8 and averaged 0.22% U3O8 over the main
mineralised structure which is 20 metres wide and 300 metres long zone. Uranium
mineralisation is characterised by pitchblende and brannerite. Pitchblende is a naturally
occurring uranium oxide (UO2) and brannerite is a complex oxide of uranium, calcium, titanium
and iron.
The project is located in a remote location in a nature reserve where exploration is permitted
subject to particular environmental procedures. The project was considered by Swedish
governmental geologists in the 1970s to be the most prospective project within the Hotagen
inlier and has yet to be drill tested.
TERMS OF THE AGREEMENT
Under the terms of the agreement, Hodges can initially earn 47.5% by completing the following:

payment of US$60,000 cash on execution of the agreement

issuing of 1,500,000 fully paid ordinary shares

Issuing 1.5M Tranche A options exercisable at $0.50,

1.5M Tranche B options exercisable at $0.75, (the Tranche A options must be exercised
before the B tranche is allotted),

Issuing 1.5M Tranche C options exercisable at $1.00 (the Tranche B options must be
exercised before the Tranche C is allotted),

Spending US$1,000,000 over four years
This agreement is conditional upon various regulatory approvals as well as shareholder
approval.
Hodges has the right to increase its equity to 70% by fully funding a successful feasibility study.
The vendors’ free-carried interest will remain until completion of a bankable feasibility study.
Hodges has the exclusive right, until 31 May 2007, to conduct due diligence prior to entering
into the binding arrangement outlined above. The exploration results have been reported in a
range of technical reports sourced from the Swedish Geological Survey dating from 1969 to
ACN 115 819 479
1991. It is the Company’s intention to commence a more systematic evaluation of the projects
following final due diligence once the field season commences. The Company is in the process
of completing its due diligence over the projects.
Sweden has an estimated 15% of the world's uranium deposits and ten nuclear power reactors
which provide approximately 50% of the countries electricity. The Company considers this to be
a particularly exciting opportunity to earn a majority interest in four very promising uranium
projects in a country which has a very advanced nuclear industry as well as a well developed
mining culture and regulatory system.
NEW PROJECTS
The Hodges continues to review potential investments within the minerals sector with a hope of
adding further value to the Company.
CORPORATE
Hodges appointed Mr Peter Mullens to the position of non executive Chairman.
Mr Mullens has a B.Sc majoring in Geology from Monash University in Australia. He has worked
in the industry for 23 years in a number of different roles including mine geology, exploration
geology and in a corporate role with Laramide Resources and Aquiline Resources both listed in
Canada. His work has included 6 years as a mine geologist for Rio Tinto and Mt Isa Mines at
Broken Hill and Mt Isa in Australia, and has included extensive experience in exploration in
Australia, Peru, Argentina, Brazil, China and Canada.
Mr Mullens was District Manager Argentina then Central America for Mt Isa Mines from 1994 to
1997 Following this Mullens worked as an independent consultant geologist based out of Lima,
Peru.
In 2002 Mr Mullens joined the Board of Laramide Resources as VP Exploration and Corporate
Development. During his time at Laramide Mullens has been responsible for identifying and
acquiring the Westmoreland Uranium Project located in Queensland Australia. He has helped
with financing and corporate development of the company and has seen the market
capitalisation of Laramide rise from CAD $5.0 million to approximately CAD $650 million.
Mullens was also instrumental in identifying and acquiring Aquiline Resources main asset in
Argentina, The Calcatreu Gold project. Aquiline is also listed on The Toronto Stock exchange,
and its market capitalisation has increased from CAD $4 million to currently around CAD$400
million.
Mr Mullens is a member of the Australian Institute of Mining and Metallurgy and brings
considerable exploration and mining experience to the Company. He currently serves as a
director of Laramide Resources and is VP Exloration.
.
Mr Barry Woodhouse resigned as Company Secretary, during the quarter to concentrate on
other business commitments. Mr Bryan Dixon has been appointed as the new Company
Secretary.
ACN 115 819 479
Cash on hand at the end of the quarter was $3.07 million. On 21 February 2007, Hodges
completed its placement of 1.5 million shares at 24 cents to raise $360,000 before costs.
For further information, please call Adrian Griffin on +61 418 927 658.
Yours faithfully
HODGES RESOURCES LIMITED
Adrian Griffin
Managing Director
DISCLAIMER
Information in this report pertaining to mineral resources and exploration results has been prepared relying on
publicly available information provided by the vendor. The information has been compiled by Mr Don Horn who is a
Member of the Australasian Institute of Mining and Metallurgy. The information reported is contained in a range of
open file reports which are publicly available from the Swedish Geological Survey. Mr Horn has sufficient
experience with respect to mineral exploration and to the activities being undertaken and qualifies as a competent
person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore reserves’. Hodges has no reason to believe the information is not accurate and intends to verify
the information whilst conducting due diligence on the projects. Mr Horn consents to the inclusion in the report of
the matters on his information in the form and context in which it appears.